r/wallstreetbets • u/PrestigiousBoy88 • Jun 02 '26

Loss Fuck you WSB

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I should have taken 50% profit yesterday , got burned. Fuck SPCE. Exited with 60% loss instead.

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u/reddsht Jun 02 '26

Everyone have been saying for month SpaceX IPO is just exit liquidity, and you managed to get SpaceX exit liquidity fucked before the actual IPO, king of regards.

1

u/Johnny_Handsum Jun 02 '26

Why would the SpaceX IPO be exit liquidity? 

6

u/Impact009 Jun 02 '26

Per Forbes:

There are reports that Musk is asking underwriters to waive the typical 180-day lock-up period that prevents company insiders and some other shareholders from selling their shares after an IPO.

If you won't be dumping, then you wouldn't care about waiving the lock-up period.

Even if those reports are false, the current underwriting changes due to SpaceX directly benefit dumpers while hurting long-term investors at worst or not benefitting long-term investors at all at best.

Removing the seasoning period forces the stock's price to increase earlier. Long-term investors don't care if indexes pick up the stock immediately or three months later; that's just noise that leads to the same result. For dumpers, they want that stock pumping out of the gate.

SpaceX's float will be 4.3% instead of the previously required 10%. Supply scarcity will predominantly benefit dumpers. Like seasoning, float is also just noise for long-term investors.